11th Feb 2014 10:58
LONDON (Alliance News) - UK telecommunications industry regulator Ofcom said Tuesday it has renewed the licenses for Channel 3 and Channel 5 for a further ten-year period starting January 1, 2015. The current licenses were due to expire at the end of 2014.
The licenses for listed companies Channel 3 are held by ITV PLC, STV Group PLC, and UTV Media PLC. Channel 5 is owned by publisher Northern and Shell PLC.
Ofcom also will create a separate licence for Wales, and a new West & South West of England licence for Channel 3 upon renewal.
All licensees must accept Ofcom's financial and area determinations for the license renewals to be granted.
Broadcaster STV said Tuesday that it had accepted the terms of the new broadcast licenses, and as a result it has been able to extend the maturity on its existing bank facility from December 31, 2014, to March 31, 2016.
UTV also accepted Ofcom's terms for the ten-year renewal of its Channel 3 licence in Northern Ireland Tuesday. UTV Chief Executive John McCann said in a statement that the contract renewal "ensures UTV's continued investment in the local economy in Northern Ireland."
ITV said was not immediately available for comment.
Shares in UTV, STV and ITV were buoyed by the news. UTV shares were up 1.7% at 246.50 pence, ITV shares up 1.8% at 204.73p, and STV shares up 4.5% at 340.50p.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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